- Although the Nifty managed to bounce back towards the end of the day, the markets were clearly under pressure through the day on global cues. The US markets and Europe have been under consistent pressure last few days.
- With the markets turning volatile, it may be time to focus on some very strong dividend stocks like IOCL, Oil India, REC and NMDC, which can offer stability at these levels.
- FIIs were net buyers to the tune of Rs.145 crores while DFIs sold Rs. (-183) crore on Tuesday. Overall, institutional traders remained subdued for the day and this trend is likely to stay till the Christmas holidays.
- Even as Singapore and Japan remained under pressure today, the US and European markets showed signs of a recovery towards the latter half of trade. The SGX Nifty is already hinting at a level around the 11,000 marks, which could a resistance.
- Auto and tractor play M&M may be a good medium-term pick at a price of Rs.770. Apart from the robust growth in tractor sales, the company is also seeing green shoots in the auto space. Target Rs.830 on the stock in one quarter.
- In the mid-sized companies, we like NOCIL as a play on the specialty chemicals space with its major Rs.425 crore expansion plan underway. With comfortable cash flow and robust turnover ratios, the stock looks set to cross the Rs.200 mark.
- With the price of crude coming down sharply, it may be time to once again pick up Interglobe (Indigo). At the current price of Rs.1120, the stock offers a 25-30% upside in one quarter assuming that oil remains around these levels.
- We suggest being cautious on the Nifty around the 11,000 levels as fresh institutional money to sustain such levels is not coming in right now.
